SemaConnect Blog

EV’s in Maryland & O’Malley’s plan

The O’Malley-Brown Administration is proposing three initiatives to promote electric vehicles in Maryland:

Description #1: Electric Vehicle Infrastructure Council: The Administration is proposing legislation to create an Electric Vehicle Infrastructure Council to help prepare the State for the rapid integration of electric vehicles into Maryland communities. The Council will include representatives of State and local governments, utilities, automobile manufacturers, and environmental and energy experts. The Council will develop strategies relating to the development of metering and charging infrastructure, home charging requirements, streamlining permits, updating building codes and parking rules, electricity demands and grid stability, incentives to increase consumer adoption of electric vehicles, and public education. Other states, including California and Connecticut, have created similar Councils.

Description #2: Demand Response Pilot Program for Charging Electric Vehicles. Most electric vehicles will be charged using Level 2 charging systems, which require 240 volts and can fully recharge of a vehicle in approximately 4 hours. The long-term challenge for utility companies is to get consumers and businesses to recharge their vehicles during off-peak hours when the electric grid has excess capacity and energy is cheaper (typically from 10:00 p.m. to 6:00 a.m.) Governor O’Malley is proposing legislation to require the Public Service Commission to implement a pilot program that permits utilities to offer homeowners and businesses incentives to recharge vehicle during off-peak hours as prescribed by their electric companies. Incentives may include time-of-day pricing of electricity, credits on electric distribution charges, or rebates on the purchase of EV charging systems.

Description #3: Tax Credits for Charging Stations for Business Electric Vehicle Fleets: Given the range limitations of first generation electric vehicles, one of the most likely markets for electric vehicles in the early years of adoption will be businesses with vehicle fleets that travel less than 100 miles per day and can be recharged at night. The Administration is proposing a State income tax credit of 20% of the cost of a electric vehicle recharging equipment that, along with the federal tax credit, will incentivize individuals and companies to invest in electric vehicle technology. Other states, including Arizona, Colorado, Georgia, Louisiana, New York, Oklahoma, and Oregon, offer tax credits for charging infrastructure. The tax credit will be limited to 3 years, with a total cap of $400,000 in tax year 2011, $500,000 in tax year 2012, and $600,000 in tax year 2013. The program will be paid for out of proceeds from our greenhouse gas emissions auction proceeds.